Mr. Michael Barry:

In response to Deputy Kyne, who referred to the request from the infant formula sector to the UK retail sector to restrict the sales of formula, the reason behind this is that there is clear evidence of a significant amount of product of infant formula entering the Chinese domestic market and the problem is that nobody knows from where this product comes. For infant formula, I cannot stress enough the importance of a properly supervised supply chain. One's source of supply is integral because this is the most sensitive and vulnerable population. When one is dealing with infants where their full diet is dependent on formula, food safety is critical. It is playing with fire for there to be product coming into China or any other market through a chain of which nobody is sure. There already have been well-documented food scares in China as a consequence of product coming in where people did not know from where it came. That is the reason behind it. On a simple matter, even if the product was shown to be from a correct origin, there are not many Chinese consumers in a position to read Dutch or Danish labels on products that they have picked up on mainland Europe. That aspect can have lethal consequences.

Ireland is doing a great deal in China right now. We have three significant manufacturing facilities in Ireland, Wyatt Nestlé, Abbott and Danone, all of whom are market leaders and the largest exporters of infant formula from this island to China. China is critical in that respect. The other point is that all of our primary dairies, such as Glanbia, Kerry Group, Dairygold and Carbery, are active in supplying ingredients to the market. It is one of the significant contributors to our ambition of 50% in Food Harvest 2020 and our focus is clearly there.

This leads us to the second question as to whether we will be ready by 2015 for the expansion. It will be challenging, but I believe we will be. One of the measures we are taking is to ensure it is not a big bang. We do not believe on 1 April 2015 we will get 50% more milk. This will take a while, as farmers ramp up as they develop. Similarly, we must ensure that we have the right equipment to produce the right foods for the market opportunities and much of our expansion will be incremental. One will see a series of step changes of medium-sized drying facilities being put in place to ensure we are fit for purpose. That is probably the correct way to go.

Members of the committee will be familiar with the fodder shortage as a consequence of this year's weather. I would go so far as to suggest that I believe we are no longer looking at a 50% increase by 2020 but, probably, are more likely to achieve the 50% by 2021, if not 2022, because the legacy of the fodder crisis is such that it has depressed milk output but will also hamper fertility rates on farms. It will take a few cycles to get us through this. The growth will be there but the 2020 piece may not be in terms of the 50:50 ratio. That would be okay, once we can have our farmers in a sustainable and economic state. In answer to the question, we will be ready for that.